Overcoming Online Information Privacy Concerns: An Information-Processing Theory Approach.

Author List: Hann, Il-Horn; Hui, Kai-Lung; Lee, Sang-Yong Tom; Png, Ivan P. L.;

Journal of Management Information Systems, 2007, Volume 24, Issue 2, Page 13-42.

The advent of the Internet has made the transmission of personally identifiable information more common and often unintended by the user. As personal information becomes more accessible, individuals worry that businesses misuse the information that is collected while they are online. Organizations have tried to mitigate this concern in two ways: (1) by offering privacy policies regarding the handling and use of personal information and (2) by offering benefits such as financial gains or convenience. In this paper, we interpret these actions in the context of the information-processing theory of motivation. Information-processing theories, also known as expectancy theories in the context of motivated behavior, are built on the premise that people process information about behavior--outcome relationships. By doing so, they are forming expectations and making decisions about what behavior to choose. Using an experimental setting, we empirically validate predictions that the means to mitigate privacy concerns are associated with positive valences resulting in an increase in motivational score. In a conjoint analysis exercise, 268 participants from the United States and Singapore face trade-off situations, where an organization may only offer incomplete privacy protection or some benefits. While privacy protections (against secondary use, improper access, and error) are associated with positive valences, we also find that financial gains and convenience can significantly increase individuals' motivational score of registering with a Web site. We find that benefits--monetary reward and future convenience--significantly affect individuals' preferences over Web sites with differing privacy policies. We also quantify the value of Web site privacy protection. Among U.S. subjects protection against errors, improper access, and secondary use of personal information is worth $30.49--$44.62. Finally, our approach also allows us to identify three distinct segments of Internet...

Keywords: conjointanalysis;expectancy theory;financialreward;information privacy;onlineprivacy;segmentation

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List of Topics

#239	0.267	privacy information concerns individuals personal disclosure protection concern consumers practices control data private calculus regulation risk individual legislation government sensitive
#27	0.121	secondary use primary data outcomes objective ways analysis range addresses development purpose budget past outcome wide direct generating occurs desired
#75	0.103	behavior behaviors behavioral study individuals affect model outcomes psychological individual responses negative influence explain hypotheses expected theories consequences impact theory
#262	0.096	impact data effect set propensity potential unique increase matching use selection score results self-selection heterogeneity evidence measure associated estimate leads
#246	0.092	strategic benefits economic benefit potential systems technology long-term applications competitive company suggest additional companies industry operating costs difficult substantial total
#130	0.053	online users active paper using increasingly informational user data internet overall little various understanding empirical despite lead cascades help availability
#15	0.050	motivation intrinsic theory social extrinsic expectancy motivations motivate usage enjoyment rewards consequences reciprocity organizational motivational focus helping system's exploratory substantial